The good side of Peak Oil

I once saw an article in Nature that was a great perspective on the flip side of peak oil, more bicycling and walking leading to better health, an awareness of WHEN to travel, as opposed to just doing it all the time because we CAN, versus when we really NEED to, less divorce as people are pressed to engage each other in relationships, all sorts of happy-happy joy-joy angles. Seemed a bit much, but not everyone is required to be a pessimist, and certainly the destruction of the modern world because of peak oils that either never happen, or don't generate the consequences claimed for them, has been far more common than the event itself as it has happened in the past.

My take on it isn't so sanguine. As of today I can handle $20/gal without much change in my commuting behavior (support domestic fuel production and distribution, boycott liquid fuels, go electric!). The unsatisfying, but completely reasonable answer from any economists perspective is that their are TWO curves that are REQUIRED to be in motion…one for supply, and one for demand. And it is this combination of the two, rather than a fascination with only one, that is the proper way to discuss this issue.

As this article properly notes.

Those who fear peak oil also often think there will be a cascade of economic disasters as a result of this peak in cheap oil supply. Today, there is emerging evidence that a peak is on the horizon -- but it's not a peak in supply, it's a peak in demand. Energy efficiency is improving, alternatives are becoming viable, and oil just isn't as attractive as it once was to consumers. The result could be a peak oil scenario that works in exactly the opposite way of what's been predicted -- and a scenario that's good for everyone.